Univest Financial Corporation · NASDAQ:UVSP
Univest Financial — Investor Presentation (December 2019)
30 slides from Univest Financial's investor presentation, Dec 10, 2019
Slide 1: Investor Presentation December 10, 2019
Investor Presentation December 10, 2019
Slide 2: Safe Harbor Statement
Safe Harbor Statement Cautionary Note Regarding Forward‐Looking Statements The information contained in this presentation may contain forward‐looking statements. When used or incorporated by reference in disclosure documents, the words “believe,” “anticipate,” “estimate,” “expect,” “project,” “targe
Slide 3: Univest Company Overview
Univest Company Overview . Headquartered in Souderton, Pennsylvania (Montgomery County) . Bank founded in 1876, holding company formed in 1973 . Engaged in financial services business, providing full range of banking, insurance and wealth management services . Comprehensive financial solutions deliv
Slide 4: 2019 Strategy
2019 Strategy . Continue to take advantage of market dislocation and focus on hiring commercial lenders including potential team lift‐outs . Hired 8 individuals including 5 relationship managers/business developers in the Western Lancaster County/York County Market in March 2019 . Hired 3 relationsh
Slide 5: Attractive Investment Opportunity
Attractive Investment Opportunity . Super‐Community Bank located in attractive Southeastern Pennsylvania market . Diversified lines of business and revenue streams (targeting 28 – 30% of total revenue for 2019) . Ability to scale and obtain operating leverage . Strong year‐to‐date 2019 earnings perf
Slide 6: Summary Financial Data
SUMMARY FINANCIAL DATA *] VUNIVEST
Slide 7: Core Diluted Earnings Per Share
Core Diluted Earnings Per Share* (16.5% Core EPS growth from YTD 9/30/17 to YTD 9/30/19) $0.60 $0.58 $0.57 $0.55 $0.56 $0.55 $0.50 $0.51 $0.47 $0.45 $0.46 $0.42 $0.40 $0.41 $0.41 $0.41 $0.35 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 *Calculated using "Co
Slide 8: Tangible Book Value Per Share
Tangible Book Value Per Share* (Target 8‐10% Annual Growth(1)) $17.00 $16.64 $16.00 $16.20 $15.72 $15.00 $15.25 $14.83 $14.54 Benefit of 12/2017 $14.51 $14.44 $14.00 Capital Raise = $1.21 $13.00 $13.23 $13.06 $12.75 $12.38 $12.00 $11.00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2017 2017 2017 2018 2018
Slide 9: Significant Growth in ROAA & ROTE
Significant Growth in ROAA & ROTE Core ROAA* Core ROTE** 1.75% 18.00% 1.50% 16.00% 1.25% 14.00% 1.00% 12.00% 0.75% 10.00% 0.50% 0.25% 8.00% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2017 2017 2017 2017 2018 2018 2018 2018
Slide 10: Loan Growth by Segment
Loan Growth by Segment Loan Detail $'s in millions $4,000,000 $3,000,000 $2,000,000 $1,000,000 $‐ Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 Proforma* Commercial, financial and agricultural Commercial Real Estate Real Estate ‐ Resi
Slide 11: Deposit Growth by Segment
Deposit Growth by Segment Deposit Detail $'s in 000s $4,000,000 $3,000,000 $2,000,000 $1,000,000 $‐ Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 Proforma* DD, Noninterest‐Bearing DD, Interest‐Bearing Regular Savings Time Deposits *In
Slide 12: Net Interest Income and Core Net Interest Margin
Net Interest Income (Asset Sensitive) Core Net Interest Margin* (1) (Excludes Purchase Accounting) 45,000 3.80% 3.75% 40,000 3.74% 3.70% 3.71% 3.70% 3.70% Margin*(1) 000s 35,000 3.68% 3.65% in Core 3.66% $s 3.64% 3.64% 3.62% 3.60% 3.61% 30,000 Proforma 3.55% 25,000 3.52% 3.50% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 13: Efficiency Ratios – Continued Improvement
Efficiency Ratios – Continued Improvement 70.0% UVSP pays a Bank Share Tax rather than Bank Income Tax to the Commonwealth of Pennsylvania. This amount is included YTD 2018 in noninterest expense and overstates our efficiency ratio by approximately YTD 2017 160 bp compared to other banks that do not
Slide 14: Stable Asset Quality
Stable Asset Quality Nonperforming Assets Nonaccrual Loans and Leases $s in 000s $50,000 2.50% $50,000 180.0% 2.00% $40,000 Leases 150.0% $40,000 and 1.50% Leases $30,000 Loans 120.0% and 1.00% $30,000 Average Loans / $20,000 (000) 90.0% 0.50% offs $'s ‐ $20,000 accrual ‐ $10,000 60.0% non Charge 0.
Slide 15: Strong Capital Ratios Provide for Operating Flexibility
Strong Capital Ratios Provide for Operating Flexibility Univest Financial Corporation (Parent) Univest Bank & Trust Co. (Bank) (Cash Position of $78.0 million at 9/30/19) 15.0% 15.0% 13.81% 11.70% 10.0% 11.03% 10.50% 10.0% 10.95% 10.50% 9.97% 9.89% 8.50% 8.50% 5.0% 5.0% 5.00% 5.00% 0.0% 0.0% Tier 1
Slide 16: Business Overview
BUSINESS OVERVIEW *] VUNIVEST
Slide 17: Univest Primary Service Area
Univest Primary Service Area Twelve counties in Southeastern and Central Pennsylvania and two counties in Southern New Jersey 17
Slide 18: Univest Financial Center Locations
Univest Financial Center Locations 18
Slide 19: Market Opportunity
Market Opportunity . With BB&T’s acquisitions of Susquehanna Bancshares and National Penn Bancshares and WSFS’ acquisition of Beneficial, Univest is one of the three largest community focused financial institutions remaining headquartered in the Philadelphia market (Bryn Mawr Trust and WSFS). Only o
Slide 20: Executive Leadership Team
Executive Leadership Team Name Age Tenure (yrs.) Title with Univest Jeffrey M. Schweitzer 46 12 President and CEO, Univest Financial Corporation Michael S. Keim 52 10 President, Univest Bank and Trust Co. Executive Vice President, Chief Financial Officer (Former Fox Chase Director of Brian J. Richar
Slide 21: Commercial Banking
Commercial Banking Commercial Loan Detail as of 9/30/2019 . 91 lenders, relationship managers and portfolio managers operating in two divisions established by geography (serving clients in Pennsylvania, New Tax‐Exempt Jersey, Delaware and Maryland) 8% • East Penn and New Jersey: Bucks, Montgomery, C
Slide 22: Consumer Banking
Consumer Banking . 39 financial service centers located in Bucks, Chester, Lancaster, Lehigh, Montgomery, Northampton and Philadelphia counties in PA and Ocean City, NJ; also operating 14 retirement centers in Bucks and Montgomery counties . Opened Intercourse location (Lancaster County) in May 2018
Slide 23: Mortgage Banking
Mortgage Banking . 28 Home Loan Consultants operating in Residential Mortgage Originations Southeastern PA $400,000 $8,000 . Centralized processing, closing and underwriting $7,000 . Primarily agency lender: FNMA, FHLMC, FHA, VA and USDA $300,000 . FNMA and FHLMC eligible loans sold $6,000 000) serv
Slide 24: Univest Capital, Inc. Lease Financing
Univest Capital, Inc. Lease Financing 145,000 10.00% 9.00% . Equipment financing business with 125,000 $141 million in lease receivables as of 8.00% September 30, 2019 7.00% 105,000 − Average lease size $38,000, typically 6.00% with four year term (000) 85,000 5.00% Yield $'s . Primary industries se
Slide 25: Wealth Management
Wealth Management . Comprehensive wealth management platform including broker / dealer, municipal pension Assets Under Management services, registered investment advisor, 3,600,000 retirement plan services and trust . Effective January 1, 2019, the Wealth division 3,000,000 was rebranded as Girard (
Slide 26: Insurance
Insurance . Independent insurance agency with Agent Written Premiums more than 60 carrier relationships 180,000 . Full service agency providing 150,000 commercial and personal lines, employee benefits and HR consulting solutions 120,000 . Built via a series of eight acquisitions (000) 90,000 beginni
Slide 27: Appendix (Non-GAAP Reconciliations)
APPENDIX (Non‐GAAP Reconciliations)
Slide 28: Appendix – Non-GAAP Reconciliations
Appendix – Non-GAAP Reconciliations This presentation includes financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). The management of Univest Financial Corporation uses these non‐GAAP measures in its analysis of the Corpora
Slide 29: Appendix – Non-GAAP Reconciliations
Appendix – Non-GAAP Reconciliations Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 $s in thousands 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 5. Core Net Interest Income Net Interest Income $34,283 $35,300 $36,888 $36,705 $37,272 $38,990 $40,423 $41,376 $41,523 $42,635 $42,645 Less: Purchase Accountin
Slide 30: Univest – Banking | Insurance | Investments
VUNIVEST BANKING | INSURANCE | INVESTMENTS univest.net
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